AUD is pushed high - How To React - AUDJPY Market OutlookShort term outlook of the Australian market: AUD is pushed to the upside after fundamental drivers that gave confidence to buyers
Q: Should I buy AUD now?
A: Not right now. Wait for correction, and then after choosing a pair that is mainly driven by AUD at that time, start loading longs.
Q: Why would AUD continue rallying high?
A: The catalyst of that bullish movement was the RBA dovish shift, which was followed by rate cuts. Investors considered that this is a brilliant time to own Australian Dollars, so they start buying. Nobody knows if the currency of Oceania will fall again but the current situation is more likely to have created fresh solid ground for bulls to start building high, after a medium-term bearish market.
AUDJPY Market Outlook:
Sentiment: Medium-term Bearish - About to shift to bullish
Pattern: Price was moving in a falling wedge which broke on the US election day and it might be catalyst for more upward momentum
Important Levels:
74.000 seems to be a strong long-term support for now.
74.200 is short-term S/R and behaves like a pivot level, meaning that we're bullish above it and bearish below it
Buy zones: We use 74.200 as a buy zone as we see that the upper limit of the wedge and the Daily level meet there. RSI is also indicating bullish momentum and it can be a reliable signal on when to buy.
Hope you liked this market outlook! Happy trading! :)
